Service charges are an important ongoing cost for owners of properties in jointly owned developments in Dubai. These charges contribute towards the management, maintenance, and operation of common areas, but owners may still want to verify that the amount they are being asked to pay has been properly approved.
The Mollak system provides a regulated framework for managing and approving service charges for jointly owned properties in Dubai. This guide explains how Mollak works, how to check approved service charges, review your invoice, make a payment, and raise a query if the amount appears incorrect.
What Is the Mollak System in Dubai?
Mollak is an electronic system used by the Dubai Land Department (DLD) to regulate and monitor service charges for jointly owned properties in Dubai. It helps ensure that service-charge budgets are reviewed and approved before property owners are billed.
Property management entities use Mollak to submit annual service-charge and usage-charge budgets for approval. Once approved, owners can check the applicable charges for their development through Dubai's Service Charge Index. The system also supports the regulated accounts used to collect and manage service-charge payments.
It's worth noting that service charges are not fixed across Dubai. The amount can vary depending on the development, the type and size of the unit, the approved annual budget, and the relevant service-charge period.
What Do Property Service Charges Cover?
Service charges are annual amounts collected to manage, operate, maintain, and repair the common parts of a jointly owned property. They are separate from mortgage payments and the cost of maintaining the interior of a unit.
Depending on the approved budget, service-charge funds may cover:
Cost Category
Examples
Cleaning and waste services
Cleaning corridors, lobbies and other shared areas
Security and safety
Building security and common-area safety services
Operation and maintenance
Lifts, shared systems, equipment and common facilities
Repairs and improvements
Approved work needed to maintain common parts
Insurance
Insurance premiums for the jointly owned property
Management and audit
Approved management-company and account-audit costs
Reserve fund
Funds for emergencies or future replacement of shared equipment
In most cases, the property owner is responsible for paying the approved service and usage charges for the unit. A tenancy agreement may require the tenant to cover these charges, but the owner should still ensure that the amounts are paid when due.
How Do You Check a Service-Charge Invoice?
Confirm that the invoice belongs to your unit and covers the correct period, then compare its current-year charge with the Service Charge Index. Review the following details:
Owner and unit information
Project and management entity
Property use and chargeable area
Budget year and billing period
Approved rate or breakdown
Current amount due
Usage charges, where applicable
Previous payments, credits and arrears
Payment deadline and escrow-account details
Do not compare only the final total. The invoice may combine the current charge with arrears or another approved component.
How Can You Pay Service Charges in Dubai?
Follow the payment instructions on the current invoice and confirm that the recipient and account details are correct. Available methods can include the following.
Pay Through Dubai REST
Dubai REST displays property and service-charge information and supports electronic payment, including through Noqodi. Select the property, review the amount, and follow the steps shown.
Transfer to the Building Escrow Account
The building escrow account details are printed on the invoice. After transferring the money, send the payment slip to the management company and include the unit reference.
Pay Through the Management Company
Some management companies accept payment through their portal or office. Confirm the available methods and when the amount will appear on the unit statement. Keep the invoice, transaction confirmation, and receipt, then check the updated account.
What Should You Do If the Invoice Does Not Match Mollak?
Confirm that the project, property use, and year match. Check whether the difference relates to arrears, usage charges, credits, or another listed amount. If the figures still do not match, write to the management entity and ask for:
A detailed unit statement
The current-charge calculation
An explanation of any arrears or additional amount
Confirmation of the approved rate
Correction of any payment or unit-detail error
Attach the invoice, index result, payment evidence, and relevant unit details. Keep the complaint and response in writing.
If the issue remains unresolved, an owner may use the jointly owned property complaint route through Dubai REST. Include the earlier written complaint, any response, and supporting evidence. An owners committee may also raise relevant concerns with the management entity or RERA.
What Happens If Service Charges Are Not Paid?
If approved service charges remain unpaid, the management entity may issue a written payment notice giving the owner 30 days to settle the outstanding amount. If payment is still not made, the unpaid charges may be referred for legal enforcement.
Outstanding service charges can also create a lien over the property, which may prevent the unit from being transferred until the amount due has been cleared. Additional legal or enforcement costs may also apply.
Conclusion
The Mollak system gives property owners in Dubai a clearer way to verify approved service charges and understand how those charges are collected. Before making a payment, owners should check the relevant project, property use, and year, then compare the approved charge with the invoice and account history.
If there is a discrepancy, raise it with the management entity in writing and keep supporting records such as the invoice, Service Charge Index result, and payment evidence. Once the amount is confirmed, payment can be completed through Dubai REST, the designated escrow account, or an available management-company channel.
For enquiries about the latest Binghatti properties, contact Binghatti property consultants on +971 800 15.
A Mollak service charge is an approved annual charge paid by property owners in jointly owned developments to cover the management, operation, maintenance, repair, and upkeep of common areas and shared facilities.
How can I check the approved service charge for a Dubai property?
You can check the approved service charge through the DLD Service Charge Index, Mollak, or Dubai REST.
Can I pay Mollak service charges online?
Yes. Service charges can be paid electronically through Dubai REST where available. Depending on the property, you may also be able to pay through the management company’s portal or transfer the amount directly to the designated building escrow account shown on the invoice.
Does the owner or tenant pay service charges in Dubai?
The property owner is generally responsible for paying approved service and usage charges. A tenancy agreement may require the tenant to pay them, but the owner should still ensure that the outstanding amount is settled.
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